Ryland Raising $250 Million in Note Offering

Homebuilder Ryland Group Inc. is raising $250 million in a convertible note offering that started this week.

The Westlake Village firm issued convertible securities paying a 0.25 percent annual interest that can be swapped for shares of common stock at $75.01 each before June 2019. The offering was made under an existing shelf registration and is expected to close Monday.

The firm said the proceeds will be used for general corporate purchases, which may include land and homes acquisitions. Ryland is one of the country’s largest homebuilders, with operations in 14 states.

Ryland has benefited from an improving housing market, and on Wednesday announced new home orders for April were up 59 percent compared to the same period a year earlier.

It’s also been on an acquisition spree, acquiring smaller homebuilders in Phoenix, Dallas and Raleigh, N.C. within the last year. The company, which had been piling up losses, swung to a $22.1 million profit in the first quarter on a 74 percent increase in revenue to $37 5million.